Morning Corner 7.8.11

PSI (weekly info)
-no change (above mid)
high= 7765.00
rev= 6727.00; mid= 7246.00

For a country (whose debt is now junk) to not only get back above the 50.0% retrace and its weekly 3LB mid is astounding. I mean, really? Now that the EU is about to ignore debt ratings for Portugal I guess anything is possible. It is failing a test of its SMA(55) & SMA(89) so the move last week might be an aberration.

NFLX (weekly info)
-no change (above mid)
high= 273.46
rev= 252.22; mid= 262.84

This week Netflix had it's second real gap higher on the weekly chart. It's interesting that the move higher started in December 2008. That's around the time the market was looking for anything to keep them out of the poorhouse. The fact that they don't have any infrastructure to transport their signal to the customer hasn't affected them…yet. It's obviously above all SMA's and making another weekly 3LB high. It's up 1154.33% since 12/5/08. That's unreal.


AmenRa said...

NFP 18k

AmenRa said...

Unemployment rate 9.2%

mcHAPPY said...

To call that a miss would be equivalent to calling WW2 a skirmish.

mcHAPPY said...

This is what really strikes me:

May was a huge miss but (from MarketWatch):

"Job gains in May were revised down to 25,000 in May from the initial estimate of 54,000."

So it was over a 100% overshoot?

Not only that the revision down (29k) was larger than the new number?

AmenRa said...

Participation rate= 64.1 (down 0.1)
Employment-Population ratio= 58.2 (down 0.2)
+27 weeks= 6289k (up 89k)
Weekly hours= 34.3 (down 0.1)
B/D= 131k
U6= 16.2% (up 0.4%)

I'm still laughing at all of the "forecasters" who revised up based on ADP.

AmenRa said...

Maybe the recent move higher in the markets was due to key insiders knowing what the NFP was going to be. If not for this move higher the SPX would be breaking below 1200 right about now.

AmenRa said...

Wow. The yields on the 5yr and 10yr notes are down 9.44% and 3.87% respectively.

Andy T said...

This just in: "Employment sucks."

QQQQ said...



Andy T said...
"Employment sucks."

I could disagree seeing I'm currently unemployed, but I can deal with it. I'm a saver, AND a spender, but, don't spend more than I earn. Credit cards = $0.00, such a good feeling.

hey, your Prez is on the tube, "he believes he can make things better". He's gonna get constrution going, guess that means build more houses, and make more roads to those houses.

LOL, he's not answering questions... now back to the Billion $ shuttle lift-off...

wunsacon said...

AmenRa said...

The expected "pump, pump, pump it up" is in effect. Must not let the market crater on a Friday. LMAO.

I give it 10-15 minutes then whoosh back down we go

Anonymous said...


the "Sweet Stuff", still, Strong..


mcHAPPY said...

How about another triangle?

mcHAPPY said...

Canada's labour market shrugged off the soft patch in the global recovery during June, as employers added 28,000 workers and the unemployment rate stayed at 7.4 per cent only because more people were confident enough to search for work.

The US is ten times the size of Canada in terms of population. And it pisses me off that StatsCan is now reporting with the same gimmicks and tricks.

AmenRa said...

Todays volume on the SPY has already matched yesterdays...

AmenRa said...

I noticed the headline and couldn't stop laughing:

Obama: Uncertainty over debt limit impacts hiring

Julie Pace, Associated Press, On Friday July 8, 2011, 12:00 pm

WASHINGTON (AP) -- Facing a dismal jobs report, President Barack Obama called on Congress Friday to end uncertainty over their debt standoff and pass a litany of administration-backed proposals, including a payroll tax cut extension and three free trade agreements. Obama's top economist said implementing those policies would reduce the jobless rate a full point by the time Obama faces re-election in the fall of 2012.

But Republican opposition and Washington's heated partisan atmosphere would likely make passing the full slate of administration proposals a political pipe dream.

Obama spoke from the Rose Garden shortly after the release of fresh figures that showed employers added just 18,000 jobs in June, the fewest in nine months, and the unemployment rate rose to 9.2 percent. The president said the numbers were yet another sign that a full economic recovery is still elusive.


Mel said...


Not to sound contentious...but location, location, location. If I had recently woken up from a three year sleep...I would only notice way more German label cars on the road. There are resource industry labour shortages in western Canada (both blue and whitecollar)...and on the low end... Filipinos have to be imported for $11.50/hr burger turner jobs. The locals aren't interested.

This goes straight to a WSJ front page a couple of years ago...(I'm paraphrasing)...Saskatchewan an island of tranquility in a turbulent economic sea.

ben22 said...


check out this ticker: IPSU

Very interested in that stock right now

QQQQ said...

AR, look at this chart... starting at the circle, last 8 or so days look similar to SPX no?

BinT said...

Interesting that temporary employment has been decreasing for the last 3 months. And that the "Civilian Employed" category of the Household Survey showed a massive 445k drop..

Until this morning, I suppose it could have been argued that the decrease in temporary employment was due to temps taking permanent positions this late in the "recovery"...I suspect that won't even be raised by the Liesman at this point.

QQQQ said...

Seems Mish worked some overtime on the Jobs Report...

Anonymous said...


re: IPSU

Sales 944.95M P/S 0.28

wouldn't be Surprised if that Co. is 'taken out'..

tho.. 52W Range 10.38 - 22.38

might be 'helpful' to keep some "Suspenders" around...


AmenRa said...


Yes it looks similar. But the SPX didn't open higher today which eliminates a ton of reversal candles.

QQQQ said...

AR, well then what about this then? Sums up the market for the last week and half... we've been fooled!

AmenRa said...

You can't make this stuff up:
Guest Post: Boiling Frog Alert: Congress Wants Automatic Wage Deductions To Pay Down The Debt

From Simon Black of Sovereign Man

Boiling Frog Alert: Congress Wants Automatic Wage Deductions To Pay Down The Debt

Folks… you just can’t make this stuff up.

On July 6th, just two days ago, at least a dozen busybody Congressmen sponsored the introduction of HR 2411, the “Reduce America’s Debt Now Act of 2011.” They always come up with fantastic names for these pieces of legislation… and rest assured, the better/more patriotic the name, the more ominous the bill. This one follows the pattern.

HR 2411 states that every worker in America should be able to voluntarily have a portion of his/her wages automatically withheld and sent directly to the Treasury Department for the purposes of paying down the federal debt.

“Every employer making payment of wages shall deduct and withhold upon such wages any amounts so elected, and shall pay such amounts over to the Secretary of the Treasury…”

That’s right. Uncle Sam is so broke that he wants to give all the good little Americans out there the opportunity to contribute an even greater portion of their paychecks to finance government largess.

Desperate? Hmmm…. Don’t worry, it gets better.

Your beloved Congress at work for the betterment of American taxpayers

ben22 said...


the charts interesting at the very least, I'm...involved, re: IPSU. I rather like the wide range, it's a momentum stock

don't fade that SODA....danger, danger!

I really expected some follow through with that big daily outside day yesterday but looking beyond just the daily breaking down from 4hr, 1hr then 30 minute charts and looking at the volume trend in each today's boost is not a shock, it closed the gaps on nearly every chart and bounced right on the MA on that move yesterday, it looked less ominous on the small time frames

I'm no fundie guy by a long shot but a market cap of 1.3b on that stock is not large to me, GMCR is over 12b by comparison.

Also, not sure if you caught my note last night...the p/e for SODA you see on-line, it's wrong...forward p/e is about 28 based on the numbers put out in the last earnings report, five year growth rate is 33%, they quote in euros and most sites online don't do the conversion

fundamentalists have to call that stock cheap based on the recent numbers, on a sales basis its cheaper than KO right now.

AmenRa said...


HAHAHAHA good one. Adding horns to a bear to make it resemble a bull. LMAO.

QQQQ said...

This may seem to be a silly question but on the 30 minute chart, all candlesticks are 30 minutes. On the 1 hour chart, each day the 1st candlestick is only 30 minutes while the rest are 1 hour. So would it be better to use 30 minute charts as opposed to 1 hour for more accurate indicator readings?

I guess I unconsciously knew this long ago when I posed as Frank Farkel and replied to one of cv's questions... sorry cv (not really)

ben22 said...


techs need to look at all degrees of trend for proper analysis

but one is not "better" than the other as markets are fractals, it's just that one time frame may reveal something others don't

uncovered gaps, volume trends, signs of accumulation or distribution, indication of pattern reversal/confirmation, different trend line angles, further verification of how legit your wave counts are and so on.

chart you use also depends on the planned duration of your trade, day trade, weeks, months, minutes, seconds, forever.

AmenRa said...


Today is forming a bearish harami (which unfortunately don't get confirmed that often). So there is a reversal pattern emerging.

On my hourly charts each candle is an hour except the final thirty minutes on.

AmenRa said...

"One" not on.

QQQQ said...


I understand that but when looking at a 1 hour chart, just saying it's not a "true" 1 hour candlestick every 7 sticks. So it's like you're mixing 1/2's and 1's.

I used a 2MA for today...
30 min - 1st 1/2 hour = 1347.00
60 min - 1st 1 hour = 1347.00

30 min - 2nd 1/2 hour = 1339.30, which would be the true 1 hour.

I know, prolly making a big deal out of nothing but when I get into HFT, I may need to know this stuff... hehe

ben22 said...

ben22 said...


I think I am not following you

or my answer should have been

look at a one day candle

it's really one!

QQQQ said...

AR, seems some do it start of the day, think power etrade does it at the end also.

EOD ramp up... pfft

AmenRa said...

MSM: "AFter a horrendous NFP markets close well off their lows."


"QE3 must be in the works so it's bullish."

"It's still a soft patch even after two very bad NFP reports."

F@#* off and go figure out how you got it all wrong.

QQQQ said...

yeh, this is what the market really needs!

Andy T said...

OK. Party people.

I'm going to be in Las Vegas this weekend with 24 of my close 'burb friends. No shit.

Somehow we have 10 couples, who have placed their kids for the weekend, all going to Las Vegas for the weekend. Should be interesting ....

Will be a the Mirage. Not my choice...just where we ended up. If you hear about any problems'll know what's going on.

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